Description: The Survivor Benefit Plan cost depends on the level of coverage you choose. SBP coverage is supplied at no cost while you are in active service. During your retirement, however, a monthly deduction is taken from your pay to pay for your SBP coverage. This can be no more than 6.5 percent of your gross retired pay. Review the coverage levels below.
Description: SBP spouse coverage costs 6.5% of the desired coverage. You can elect full or partial SBP coverage. DFAS will withhold 6.5% of your retirement pay for surviving spouse coverage.
Description: The amount of the benefit is a percentage of your retirement benefit based on your election. Enrollment in an annuity plan is not automatic and there are costs. If you are enrolled you will pay premiums for your SBP coverage.
Description: At retirement, full basic SBP for spouse and children is automatic if you make no other valid election. You may not reduce or decline spouse coverage without your spouse's written consent. If you have a former spouse, it may affect your options. Select one of the SBP options for specifics on costs and benefits for that option: Spouse; Former Spouse
Description: For existing SBP-electing retirees, it increases with future COLAs. If you became a member of a uniformed service on or after March 1, 1990, and you are retiring for length of service (not for disability), and you are not retiring under reserve retirement, SBP costs will be calculated only under the formula in (1) above.
Description: Example: After a 12-year marriage, a court divides a military retirement with 70% to the military member and 30% to the former spouse, but orders the spouses to share the SBP premium costs equally. The member is effectively paying 70% of the premium because it is deducted from the retirement prior to receiving his/her share.
Description: If you have sat through a military retirement Survivor Benefit Plan briefing then you have no doubt heard the argument that it takes 30 years to “pay up” SBP premiums. This means that there is a cap on premium payments, while the annuity payments continue as long as the spouse lives.
Description: The Survivor Benefit Plan (SBP) “Payback” Period. From The Mailbag: Term Life Instead of SBP. From The Mailbag: SBP When You Marry After Retirement. The decision whether to choose Survivor Benefit Plan (SBP) coverage is very personal, and very important. Military retirement pay ends with the death of the retiree.
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